UBS on Semiconductor Equipment: Stronger Semi Wafer Demand is Positive

UBS on Semiconductor Equipment: Stronger Semi Wafer Demand is Positive

Analyst, Stephen Chin, said, "Our checks found Taiwan demand for 300mm semi wafers (25% of global demand) in the month of May was 993K pieces compared to 748K in April. Our analysis shows 300mm semi wafer demand has historically moved in-line with semicap orders. We note June is typically a strong month (up 10% m/m on average) and still estimate wafer demand in 2Q12 will be up 10% q/q."

TSMC's (NYSE: TSM) semicap orders included ASML for $225M, KLA-Tencor (Nasdaq: KLAC) for $28M and Applied Materials (Nasdaq: AMAT) for $23M. United Micro's (NYSE: UMC) semicap orders included $22M with Lam Research (Nasdaq: LRCX). Our analysis shows TSMC’s orders in 2Q12 are tracking up 17% q/q to $2.1B versus 1Q12 at $1.8B. Our analysis shows TSMC’s semicap orders in 2Q12 are tracking up with KLA at +60% q/q, Applied up 26% q/q and Lam/Novellus down -3% q/q.

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